Is 2019 the best year to invest in your dream home?

The top 3 reasons that make 2017 the best year to invest in your dream home.

Home buyers are always looking for the best time to purchase their dream home. A lot of factors like the condition of the real estate market, the home loan interest rates, Government benefits, timing of your purchase, etc play an important role in deciding whether you get the most out of your budget or not.

Here, we take a look at 3 reasons that make 2017 probably the best year to purchase the dream home that you have been waiting for.

1. Market Conditions: ‘Real estate grappling with triple whammy’

The combined impact of demonetisation, the new Real Estate and Regulation Act (RERA), and goods and services tax (GST) has left India’s property market in shambles, with sales for the first half of the year down close to 30 percent all over India.

“Real estate has gone through many down cycles since 1991. But I have never seen three tsunamis together,” said Niranjan Hiranandani, MD of the Hiranandani group, one of the country’s oldest and largest property developers.

For buyers in this tough market, though, it’s time to go shopping because apartments and projects are abundant, and for the moment, much more affordable. Experts feel that those who are financially ready should take a plunge to gain the advantages. Cities such as Bengaluru, Hyderabad, and Mumbai among others still hold a lot of value for buyers of ready-to-move apartments.

2. Low Home Loan Interest Rates

Last week, the Reserve Bank of India reduced its repo rate yet again. With the 25 basis points reduction, the repo rate is now at 6 percent. Since mid-2014, this is the seventh time the RBI has reduced the lending rate in response to various macroeconomic factors. Not just that, banks now are proactively reducing their lending rates. SBI has slashed its home loan rate to 8.35%.

For everyone looking to take a home loan, all this is great news. There’s now the possibility of taking bigger loans or incurring lower interest costs in making your dream home purchase a reality. The low interest rates would further boost the confidence of property buyers, who have also benefited from the arrival of the Real Estate Regulation and Development Act. There’s never been a better time to go for your dream home.

3. Pradhan Mantri Awas Yojna (PMAY)

Credit Linked Subsidy, is a scheme launched for Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG – I & MIG –II). The beneficiary would be eligible for interest subsidy on purchase of a house.

In the middle-income group categories (MIG – I & MIG –II), effectively anyone earning between Rs 6 lakh and Rs 18 lakh per annum can avail the benefits upto Rs. 2.67 Lakhs through subsidized loans.

This scheme for middle-income groups (MIG I and MIG II) is valid till 31st December 2017.

Click here to get more details on PMAY.

Will prices go up in the future?

With the implementation of RERA (Real Estate Regulatory Act) the property prices are likely to see an upward spiral. The RERA requires developers to be transparent about the source and use of funds for a project, and the higher cost of complying with the regulation is unlikely to be absorbed by the builder. So the next few months will be the ideal buying window for buyers.

It is a buyers’ market now. Till the market stabilizes, many builders would be in need of cash flow and buyers would definitely have an upper hand in negotiating the best deals in the primary property market.

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